Need Help Understanding Printing Press Privileges

[RUSH2112]

My question is this.................

What allows some countries to print infinite amounts of money while other countries can not?

Example, why can't a country like Cuba, print infinate amounts of paper money?

My guess is, after printing, the key is having a willing buyer, who pays in another currency.

In the real world, none of us buy something or loan money without getting something in return.

I understand China buys U.S debt but what are they getting in return?

[anotherdave]

My question is this.................

What allows some countries to print infinite amounts of money while other countries can not?

Example, why can't a country like Cuba, print infinate amounts of paper money?

My guess is, after printing, the key is having a willing buyer, who pays in another currency.

In the real world, none of us buy something or loan money without getting something in return.

I understand China buys U.S debt but what are they getting in return?

I think you are confusing money with fiat. You can't print money unless you're someone like J. K. Rowling, or Steven King.

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[bemac]

Supply and demand.

[Malus]

Faith (at least when it comes to fiat). In absence of faith, something of value needs to be traded.............

[Thornapple]

I understand China buys U.S debt but what are they getting in return?

All of US industry. The US says to China, buy our debt and we'll make sure all factories, etc are moved to China. The US then makes US business offers it can't refuse, like no taxes if you move your factory to China. Or if you're a holdout, like Gibson Guitar, they come lean on you and say you're moving to Asia or we'll shut you down by seizing all your product but not charge you with anything so you can't go to court to get any of it back.

[Kingfisher]

It might have something to do with the power to tax.

We are pretty damned efficient at tax collection although that doesn't get us past the fact that taxes are paid in FRN.

[anotherdave]

It might have something to do with the power to tax.

We are pretty damned efficient at tax collection although that doesn't get us past the fact that taxes are paid in FRN.

More accurately, the right to contract.

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[Kingfisher]

More accurately, the right to contract.

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I am missing something. Contract between whom? USA & China?

[Libertaurum]

Good question.

IMO, the answer is: armies and banks. Foreign policy and monetary policy are intimately intertwined. Examine the history of Bretton Woods, the formation of the World Bank and IMF. Even WWII. There is a complex background to History that isn't taught in schools and remains mostly unseen.

[gringott]

It might have something to do with the power to tax.

We are pretty damned efficient at tax collection although that doesn't get us past the fact that taxes are paid in FRN.

The strange thing about taxes in the USA anyway, is that they don't really need them. It seems to be a way of directing you to do certain things.
In case you are in doubt, the monetizing of the FedGov budget proves the point. Just shy of 50% is printed. Meaning they tax every single FRN in the world by lowering its value. They could abolish the IRS tomorrow and print up the rest. The more money you have, the more value would be lost, meaning a true progressive income tax without the IRS. However, the couldn't trick you into the stock market with tax deductions, con you into buying a McMansion because "I can deduct the interest", punish some businesses and reward others. All that would be gone. Obviously, they are not restrained by tax receipts, they have proven that for almost 100 years. If interest on the "borrowing" is a problem, abolish the FedRes and have the Treasury print greenbacks instead of FRNs. No interest at all. Of course, people will quickly convert their FRNs or greenbacks to something that is not inflating, so they will be in an endless cycle of printing to infinity. Like what is going on now ha ha.

As far as China buying US Treasuries, you can be sure that there is some agreement that we don't know about. Like suddenly closing the borders to Chinese goods if they don't buy. Just like the petrodollar, if you try to trade oil in something else, you must be building WMD and we will have to invade.

The Elite running this show are the biggest gangsters in history, bar none. The mafia are like a teenage street corner gang next to these operators.

Back to the OP question, most countries are constrained on printing because the people can optain another fiat currency [or something else of stable value] that is not inflating as much. Example: Mexico early 1980's. The peso was inflating like crazy. Answer? Purchase FRNs as soon as you get Pesos. Israel same time period, also inflating. Big problem for Israelis to hold dollars. Therefore, they purchased bus tokens and first class stamps [like our forever stamps] because the bus token was good for one ride and the stamp was good for one letter [not denominated in currency]. Of course, a currency that is inflating like that will not be desired by outsiders, so all must convert to a stable currency before purchasing imported goods.

[anotherdave]

I am missing something. Contract between whom? USA & China?

You and the Federal Reserve System.

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[anotherdave]

The strange thing about taxes in the USA anyway, is that they don't really need them. It seems to be a way of directing you to do certain things. . .

They spend it into favored parts of the economy, tax it from the disfavored, and monitor and control it in-between by tax regulations. And it doesn't cost them a nickle!

Not a bad racket, eh?

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[Kingfisher]

You and the Federal Reserve System.

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I haven't read it but it sounds like a failed contract.

[Cigarlover]

My question is this.................

What allows some countries to print infinite amounts of money while other countries can not?

Example, why can't a country like Cuba, print infinate amounts of paper money?

My guess is, after printing, the key is having a willing buyer, who pays in another currency.

In the real world, none of us buy something or loan money without getting something in return.

I understand China buys U.S debt but what are they getting in return?

China buys US debt, In return they get US manufacturing and a market to sell their useless wares. Us gets to export its inflation to China as well.

Any country can just print all the fiat they want. It wont be worth much in a very short time though. Cuba for example has 2 currencies. One they use in country to pay the people the 20.00 a month and the other is used to exchange for goods by countries that will accept them. Most countries wont accept the cuban peso though and its pretty much worthless outside of the country. I think most imports to Cuba are paid for with dollars, euros or Can dollars that they receive from traveler and Governments. (The us Gov has to pay the Cuban Gov something like 50 or 150 million a year, I forget the exact number, to allow phone lines to be run to Cuba from the US.) Lots of Cubans in the US and abroad sending home dollars as well.

[phideaux]

Example, why can't a country like Cuba, print infinate amounts of paper money?

They can, and they do. Zimbabwe was only a few years ago.

I'm a Zimbabwean bazillionaire! BWAHAHAHAHA!

[anotherdave]

I haven't read it but it sounds like a failed contract.

Offer and honor.

She offered her honor, he honored her offer. And all night long it was offer and honor. Yuk yuk.

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[Kingfisher]

Offer and honor.

She offered her honor, he honored her offer. And all night long it was offer and honor. Yuk yuk.

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.......Yuk.

[Aurumag]

The Printing Press has been replaced by the electron.

I constantly query retail sales clerks, and in my travels, it looks as though 85% of all transactions are "paid" with electronic money.

It is much easier to manipulate the ethereal than the physical, as we have all witnessed in terms of PM price manipulation.

Such gross manipulation can only get far worse once cash is eliminated as the "archaic payment choice of drug dealers and terrorists."

[anotherdave]

.......Yuk.

The point being that you invite the yuk on yourself by accepting the offer, and make the problem worse by supporting this private "currency" scheme.

Don't expect any sympathy when you dislike the consequences. Or as Justice Roberts told you, it's not his job to protect you from your own bad choices.

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[All-in]

My question is this.................

What allows some countries to print infinite amounts of money while other countries can not?

Example, why can't a country like Cuba, print infinate amounts of paper money?

My guess is, after printing, the key is having a willing buyer, who pays in another currency.

In the real world, none of us buy something or loan money without getting something in return.

I understand China buys U.S debt but what are they getting in return?

If you're an independent country then you can print as much as you want. But if you're part of a union then NO is the answer.

The dollar is for the USA. While the euro is for many countries (Greece, France, Germany ETC.....).

The benefit to the USA is that it can......Wait there is no benefit, for the citizens anyway!

While the euro will benefit citizens because each country that is part of the euro cannot print, and will have to face upto their obligations rather than just inflate their problems away.

The US/UK would be in the tank along with Greece if it didn't still have the ability for it's central bank to Q/E to enable commercial banks to purchase government bonds.

The Maastricht Treaty forbids central banks from buying government debt.

I read awhile back that a new Q/E will be put in place if it does goes real bad (great depression), that central banks will purchase bonds from the government then cancel the debt!

..."The Bank of England could engage in an extreme form of quantitative easing.

It could purchase a sizeable amount of British government debt and then announce that the debt was being cancelled, that it never needed to be repaid.

It would therefore be dropping cash into the economy, it would be pure helicopter money, to use the phrase beloved of economists."

Link here... http://www.bbc.co.uk/news/business-14589325

[hoarder]

International bankers meet once a year in private to discuss what currencies will be inflated and which will be deflated. As we know on Wall Street, it's really all about foreknowledge.



http://www.texemarrs.com/061998/bilder2.htm

[Kingfisher]

The point being that you invite the yuk on yourself by accepting the offer, and make the problem worse by supporting this private "currency" scheme.

Don't expect any sympathy when you dislike the consequences. Or as Justice Roberts told you, it's not his job to protect you from your own bad choices.

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So I accepted the offer by choosing to live in the USA?

(And I actually thought the joke was funny.)

[anotherdave]

So I accepted the offer by choosing to live in the USA?

(And I actually thought the joke was funny.)

No, you accepted the contract with all its adhesions when you accepted the benefit of using the Federal Reserve System's private "currency".

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[Ebie]

My question is this.................

What allows some countries to print infinite amounts of money while other countries can not?

Example, why can't a country like Cuba, print infinate amounts of paper money?

My guess is, after printing, the key is having a willing buyer, who pays in another currency.

In the real world, none of us buy something or loan money without getting something in return.

I understand China buys U.S debt but what are they getting in return?

Cuba can print as much of its own currency as it wants.
Acutally, Cuba has (and prints) two kinds of money: convertable pesos and national pesos!
USA only has one kind of money!